RATIO ANALYSIS Data for Barry Computer Co. and its industry averages follow.

1) Calculate the indicated ratios for Barry:

a- Current Ratio (industry average = 2.0x)

b- Quick Ratio (industry average = 1.3x)

c- Days Sales Outstanding (industry average = 35 days)

d- Inventory Turnover (industry average = 6.7x)

e- Total Asset Turnover (industry average = 3.0x)

f- Profit Margin (industry average = 1.2%)

g- Return on Assets (industry average = 3.6%)

h- Return on Equity (industry average = 9.0%)

i- TIE ratio (industry average = 3.0x)

j- Debt/Total Capital (industry average = 47%)

2) Construct the DuPont equation for both Barry and the industry.

3) Outline Barry's strengths and weaknesses as revealed by your analysis.

Barry Computer Company: Income Statement for Year Ended
December 31, 2014 (in Thousands)
Sales		$1,607,500
Cost of Goods Sold
Materials	$717,000
Labor	453,000
Heat, Light, and Power	68,000
Indirect Labor	113,000
Depreciation	41,500	1,392,500
Gross Profit		$215,000
Selling Expenses		115,000
General and Admin. Expenses		30,000
EBIT		$70,000
Interest Expense		24,500
EBT		$45,500
Federal and State Income Taxes (40%)		18,200
Net Income		$27,300

Barry Computer Company:
Balance Sheet as of December 31, 2014 (in Thousands)
Cash	$77,500	Accounts Payable	$129,000
Receivables	336,000	Other Current Liabilities	117,000
Inventories	241,500	Notes Payable to Bank	84,000
Total Current Assets	$655,000	Total Current Liabilities	$330,000
		Long-Term Debt	256,500
Net Fixed Assets	292,500	Common Equity	361,000
Total Assets	$947,500	Total Liabilities and Equity	$947,500